Tax Filings

Most Common Tax Classifications

Discover the most common tax classifications to discuss with your tax advisor.

Most common tax classifications for LLCs and C-corporations

Learn more about the most common tax classification elections and the filings required.

LLCs may elect to be taxed as a disregarded entity, partnership, C-corporation, or S-corporation. An LLC owned by one individual or entity can choose to be taxed as a disregarded entity, C-corporation, or S-corporation. An LLC owned by two or more individuals or entities can elect to be taxed as a partnership, C-corporation, or S-corporation.

A C-corporation can elect to be taxed as a C-corporation or an S-corporation. Please note that only U.S. citizens, U.S. permanent residents, and those who meet the substantial prescence test can elect to be taxed as an S-corporation.

Tax classification options for LLCs and C-corporations

LLC	C-corporation
Disregarded entity	C-corporation
Partnership	S-corporation
C-corporation
S-corporation

Tax filing requirements for LLCs and C-corporations

Learn more about some of the tax filing requirements based on your tax classification.

LLC taxed as DE

An LLC taxed as a disregarded entity would file the following:

• 5472 Information Return

• 1120 corporate return for the US LLC

• 1120 for any foreign entity that owns the US LLC

• May be required to file 1040NR and W-7 if living outside the US

• May be required to file 1040 and W-7 if living within the US

A single founder LLC's default classification is a disregarded entity. A W-7 is only needed for those persons who do not have a social security number or an individial tax identification number. Please speak with a tax advisor to discuss your tax filing options and obligations.

LLC taxed as Partnership

An LLC taxed as partnership would file the following:

• Informational Partnership Return (Form 1065)

• Issue K-1s to each LLC Member

• Each Member is responsible for filing a U.S. income tax return and

• filing quarterly Form 8804 Annual Return for Partnership Withholding Tax

• All Members would need to obtain an Individual Tax Identification Number

The default tax classification for an LLC with two or more founders is a partnership. If the foreign-owned multi-founder LLC has no income and no expenses, deductions, or credits it would like to claim, then there is no Form 1065 and K-1 filing requirement. However, LLC partnerships may cause foreign owners to encounter a number of unanticipated U.S. tax consequences.

U.S. partnerships that have foreign partners are required to withhold U.S. tax on their distributive share of partnership income. This withholding occurs quarterly and must be made at the highest graduated rate for the particular type of income, currently 21% for corporations and 37% for ordinary income earned by individuals. Partnerships must annually file Form 8804 (Annual Return for Partnership Withholding Tax) to report the tax withholding that took place during the year. Please speak with a tax advisor to discuss your tax filing options and obligations.

LLC taxed as C-corp

An LLC taxed as a C-corporation would file the following:

• 5472 for US LLC

• 1120 corporate return for US LLC

• Personal returns are not required

• 1120 for any foreign entity that owns the US LLC

Please speak with a tax advisor to discuss your tax filing options and obligations.

C-corp

A C-corporation would file the following:

• 5472 for US LLC

• 1120 corporate return for US LLC

• Personal returns are not required

• 1120 for any foreign entity that owns the US LLC

Please speak with a tax advisor to discuss your tax filing options and obligations.